5 minute read
As a self-employed person in Singapore, there are certain money matters that you need to be responsible for and one of them is making your own CPF contributions.
Self-employed individuals with a net trade income above $6,000 a year must make mandatory CPF contributions into their Medisave Account (MA). Although contributions into their MA is compulsory, there is also an option to make Voluntary Contributions (VC) into all three CPF accounts – Ordinary Account (OA), Special Account (SA) and Medisave Account (MA) – instead of just the MA. However, you can’t make Voluntary Contributions to your OA only.
There is also a maximum amount of Voluntary Contributions you can make in a calendar year, which is the CPF Annual Limit of $37,740 minus mandatory contributions to MA. If both voluntary and mandatory contributions reach the CPF Annual Limit, no further Voluntary Contributions can be made.
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Just in time for the holidays, the OECD has published
detailed guidance about the impact of the COVID-19 pandemic on
transfer pricing. The guidance has useful information for taxpayers
and tax administrations alike. It contains general advice on the
application of basic transfer pricing principles during the
pandemic, as well as specific advice on four issues: (i)
comparability analyses, (ii) allocating losses, (iii)
government-assistance programs, and (iv) advance pricing
arrangements ( APAs ). The OECD guidance is broadly
consistent with comments we made in
a prior post about the impact of the pandemic on transfer
6 minute read
Singapore corporate income tax is a flat 17% of a company’s chargeable income. This is already one of the lowest and most competitive corporate income tax rates in the world. Nevertheless, there are still ways to further reduce your corporate income tax.
Tax Exemption Scheme For New Start-Up Companies
Introduced in YA 2005 to support entrepreneurship and help new local companies grow, the tax exemption scheme provides tax savings for new companies in your first 3 consecutive Year of assessments (YA).
From YA 2020 onwards, new start-ups are given 75% exemption on the first $100,000 of their chargeable income, and a further 50% exemption on their next $100,000 of chargeable income. Here’s how your new start-up may save on corporate income tax:
Subcontracting firm director first to be convicted of giving false statement to IRAS, jailed 10 days Toggle share menu
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SINGAPORE: The director of a firm that subcontracts electrical and metal works on Friday (Dec 18) became the first to be convicted of giving a false statement to the Inland Revenue Authority of Singapore (IRAS) during its criminal investigations.
Law Yu Hong, the 53-year-old director of the company, Ho Sin, was jailed for 10 days and fined S$5,000 for two counts under the Income Tax Act.
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He will also have to pay a penalty of S$38,400 - twice the amount of the cash payout he wrongfully obtained under the Productivity and Innovation Credit (PIC) scheme. The scheme, which was introduced in 2010, allows businesses to get tax deductions and allowances on certain expenses.